1. 2008 Annual Five Year Plan Update 4 For RPG-CREZ Meeting 12/14/2007 Department of Regional Planning Harry Liu

2. Reliability Projects Presented at the 10/12/2007 RPG Meeting

3. List of Reliability Projects

4. Economic Projects Update

5. Economic Projects And Year Feasible

6. 2012 Summary In 2012, with all the economic projects: –Total production cost savings: $120 million –Total capital cost of economic projects: $370 million –Total capital cost to annual savings ratio: 3.1 < 6 –Total wind generation dispatch increased by 5.6% –Total wind curtailment with all the economic projects: 1.6%

7. Discussion of Selected Economic Projects

8. Bowman to Oklaunion 345 kV Line

10. Estimated Total Capital Cost: $71 Million 2012 Annual System PC Savings: $28 Million Capital Cost to PC Saving Ratio: 2.6 < 6 Increased dispatch of total wind capacity by 1.1% Economics of Bowman to Oklaunion 345 kV Line

11. Clear Crossing 345 kV Substation Excluding upgrades at Mulberry

12. Before Clear Crossing 345 kV Substation

13. Clear Crossing 345 kV Substation

14. Estimated Total Capital Cost: $11 Million 2012 Annual System PC Savings: $3.2 Million Capital Cost to PC Saving Ratio: 3.4 < 6 2009, 2010, 2011 Total PC Savings: $ 19.3 million, more than enough to repay all the capital cost and return on capital In 2012, increased wind dispatch by 0.4% Economics of Clear Crossing 345 kV Substation

15. Red Creek to Killeen 345 kV Single Circuit with Series compensators

16. Red Creek to Killeen 345 kV Single Circuit

17. Estimated Total Capital Cost: $192 Million, 20 Million for Series Compensation 2012 Annual System PC Savings: $32.3 Million Capital Cost to PC Saving Ratio: 5.9 < 6 Increased dispatch of total wind capacity by 3.1% Further stability study is needed Economics of Red Creek to Killeen 345 kV Single Circuit

18. Other Options Studied 1.Clear Crossing to W. Denton to Carrolton 2.Clear Crossing to Hicks 3.Long Creek to Hicks 4.Red Creek to W. Gate to Kendall and Killeen 5.Red Creek to W. Gate to Kendall 6.Red Creek to Everman

19. Clear Crossing to W Denton to Carrolton 345 kV Line

20. Clear Crossing to Hicks 345 kV Line

21. Long Creek to Hicks 345 kV Line

22. Red Creek to W Gate to Killeen and Kendall 345 kV Lines

23. Red Creek to W Gate to Kendall 345 kV Lines

24. Red Creek to Everman 345 kV Lines

25. Economics of Red Creek to Everman 345 kV Lines - Preliminary Estimated Total Capital Cost: $130 - $170 Million 2012 Annual System PC Savings: $27 Million Capital Cost to PC Saving Ratio (Avg): 5.6 < 6 Increased dispatch of total wind capacity by 3.0% May be able to built before 2012 Further West to North stability study is needed

26. Questions?